Markets 3h

Public Markets

Market Volatility

Homeowners staying put for 12 years is stifling the US housing market, according to Redfin data. Liz Ann Sonders warned of a "tricky environment" for markets as investors assess risks from the Iran war. The typical homeowner tenure has nearly doubled over two decades, creating inventory shortages that continue to pressure prices.

Oil and Currency Markets

US oil futures topped $81 reaching their highest level since July 2024 amid escalating Middle East tensions. The dollar is eyeing its best week since 2022 as the US strike on Iran triggered a flight to safety. Traders are now focused on Friday's jobs report to determine if the dollar rally will extend further.

Aviation Industry Disruption

Flight cancellations have topped 23,000 as the Iran conflict compounds logistical troubles for global aviation. Heathrow Airport faces mounting cancellations and parked planes from the war, creating an "operational challenge" for the London hub. Airlines are being squeezed into narrow corridors after drone attacks on Azerbaijan further pressure western carriers.

Legal and Regulatory Challenges

Trump's new tariffs face a major legal challenge from states planning to file a lawsuit over his 10% tax on imported goods. The Supreme Court's recent decision has emboldened state attorneys general to contest the executive order's constitutionality. Meanwhile, Germany secured a US sanctions exemption for the Rosneft refinery, sparing Berlin from major fuel supply disruptions.

Technology and AI Sector

Oracle plans thousands of job cuts as it faces an AI cash crunch, according to sources. The company is restructuring its workforce amid slowing enterprise software demand and increased competition in cloud services. Meanwhile, Nvidia shares sank on reports of potential global AI chip export rules that could limit sales to China and other markets.

Financial Markets and Policy

Bond traders are increasingly betting the Federal Reserve will forgo any rate cuts this year as Middle East conflict boosts oil prices. The intensifying war threatens to push up inflation just as markets were pricing in monetary easing. Goldman Sachs upgraded AIG, saying commercial insurers are best positioned to benefit from AI-driven efficiency gains in underwriting and claims processing.

Corporate and Investment Moves

Colombian tycoon Jaime Gilinski invested $107 million in Geo Park, envisioning a vehicle to enter Venezuela's recovering oil sector. The billionaire sees opportunities in Latin American energy markets despite ongoing geopolitical risks. Saba Capital offered a steep discount for Starwood real estate shares, seeking a stake in the fund that sharply limited investor redemptions last year.

Private Equity

Biotech & Infrastructure Deals

Science Corp raised $230 million in Series C funding to advance brain-computer interface technologies. The biotech startup, founded by Neuralink alumni, aims to commercialize neural interface solutions.

Littlejohn invested in GDS Associates, a power infrastructure consulting firm. GDS president David Brian will continue leading the company under the new ownership structure.

Market Outlook

The secondaries market faces uncertainty ahead as macroeconomic conditions evolve. Industry experts note this creates both headwinds and tailwinds for investors navigating the current landscape.

Sector Investment

Infrastructure Investment

AlbaCore is targeting €1 billion for its inaugural high-yield infrastructure debt fund, marking the firm's first foray into infrastructure credit. The firm plans to quickly follow this with the launch of an investment-grade vehicle, expanding its credit strategy.